Outside / Inside / Umbrella / Perm or Bye!

[LondonManc]

I think that is it really. Reassurance is very true as I am quite cautious and have been given good feedback from friends too outside of the forum.

I have enough proof that the right steps were taken as with all my contracts. Tbh the Umbrella rate isn't horrific and I have spoken to Lucy as recommended on here as well as a few others. You are right that the fee extraction vehicle is irrelevant. It is just a nervous jump at the same client between two methods of pay and as people are saying the risk is low.

HMRC want their pound of flesh to prove they are right; you'd be one of the few that they won't go near because EY have been involved and so has the CEST tool.
It's the outside to inside contractors that they'll be after.

[elsergiovolador]

So if someone was running a business that provided certain service and now becomes an employee of an umbrella and providing exactly the same service, wouldn't that prove the arrangement was to optimise tax and it was not a real business in the end?

[ladymuck]

So if someone was running a business that provided certain service and now becomes an employee of an umbrella and providing exactly the same service, wouldn't that prove the arrangement was to optimise tax and it was not a real business in the end?

It depends on WHY.

[elsergiovolador]

It depends on WHY.

Well, from April the client will potentially be liable for a penalty and tax if they got a contractor for an employee role, so many do preparations already, to remove themselves from any risks.

[Lance]

Well, from April the client will potentially be liable for a penalty and tax if they got a contractor for an employee role, so many do preparations already, to remove themselves from any risks.

Which is completely irrelevant to the OP and the question.
Please. Just give it up now. Accept that you're wrong and walk away with some dignity.

[LondonManc]

So if someone was running a business that provided certain service and now becomes an employee of an umbrella and providing exactly the same service, wouldn't that prove the arrangement was to optimise tax and it was not a real business in the end?

No. If the only way a specialist can provide his expertise to a company is via the payment vehicle of the client's choosing, why would that affect his working practices, statement of working or other contractual obligations that are not related to how the earned fees get to him?

[Paralytic]

So if someone was running a business that provided certain service and now becomes an employee of an umbrella and providing exactly the same service, wouldn't that prove the arrangement was to optimise tax and it was not a real business in the end?

No, it wouldn't. I'm not sure you're ever going to get this.

[elsergiovolador]

No, it wouldn't. I'm not sure you're ever going to get this.

Are you saying that because you don't like it, or do you have an argument why you think that?

IR35 has been created to prevent the situation when an employee on Friday becomes a contractor on Monday for the same company. This situation looks the same but other way around.

[LondonManc]

Are you saying that because you don't like it, or do you have an argument why you think that?

IR35 has been created to prevent the situation when an employee on Friday becomes a contractor on Monday for the same company. This situation looks the same but other way around.

Changing your payment vehicle doesn't make you a permie. HTHBIDI.